SIMPLICITY ways to help manage costs in the current market 2022

Below are 3 ways to help manage costs in the current market environment:

1) Buy in layers

• Create a long-term strategy to make implementation of a layered strategy easy to execute. Avoid the risk of buying at a market high or missing out on an opportunity by buying in layers to better manage risk and smooth out pricing. 
• You decide what works best for your energy profile. It can be as simple/flexible as:
  • 2 buys instead of 1, or 
  • Customizing the purchasing strategy as desired and allowing us to help you and your customers execute on it. 

2) Look for efficiency projects that can help reduce costs

• Efficiency projects can help offer a way to realize cost savings through a reduction in consumption and/or an improved load profile.
• Whether you have the funds in place to finance their efficiency project on their own or whether they need a funding vehicle – we are here to help. There are options to help your customers evaluate and implement efficiency projects.

3) Take advantage of lower prices further out the curve

• Yes, prices in the near term have been extremely volatile and have risen dramatically. However, the market is backwardated, prices trading in the futures market are lower than current prices, and the 5-year average 2023-2027 price of NYMEX natural gas is approximately $3.25/MMBtu, which is comparable to the 10-year historical average NYMEX price (of $3.07/MMBtu, unadjusted for inflation). This can present an opportunity for customers open to considering longer terms.